No savings at 50 and worried about the State Pension? You could still retire with £300k+

first_img Image source: Getty Images. Edward Sheldon, CFA | Saturday, 10th October, 2020 Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. 5 Stocks For Trying To Build Wealth After 50 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your free copy of this special investing report now! Enter Your Email Addresscenter_img Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. No savings at 50 and worried about the State Pension? You could still retire with £300k+ If you’re 50 with no retirement savings, you may be worried about retirement. After all, the State Pension – the income that the UK government pays to those in retirement – is just £175.20 per week, or £9,110.40 per year. That’s not enough to live on.No savings at 50 isn’t an ideal situation. However, it’s also not the end of the world. Act quickly, and you could still build up a savings pot of £300k+ for retirement. This level of savings, combined with the State Pension, should enable you to live a comfortable, stress-free lifestyle in retirement. Interested to learn more? Here’s what you need to do.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Now’s the time to start savingIt goes without saying that if your goal is to retire with that sort of amount, it’s crucial to start saving immediately.My advice here? Go back to basics. Draw up a budget. Cut down on expenses. Pay yourself first. And save all you can. Even if you can only save a little bit of money, get into the habit of saving regularly. This will put you on the path to financial security.The right savings vehicle for retirementDon’t just save into any old account though. Instead, take advantage of the amazing tax-efficient retirement saving vehicles that are on offer today.A good example here is the Self-Invested Personal Pension (SIPP) account. With a SIPP, the government rewards you for saving for retirement. To save £1,000, you only need to contribute £800 if you’re a basic-rate taxpayer. The government adds in the extra £200 for you.This is a fantastic deal. If your goal is to hit £300k+ in savings before you retire, a SIPP is definitely worth considering.Investing: the key to building long-term wealthThe final step is to invest your retirement savings properly. Leave your money sitting in cash and it won’t grow much. In fact, it will actually lose purchasing power over time due to inflation.Invest your savings in growth assets such as stocks and funds however, and your money should grow at a healthy rate over time. Over the long run, stocks tend to generate returns of about 7-10% per year. Pick the right stocks (The Motley Fool can help you here), and it’s possible to do even better than this. For example, had you invested in Rightmove shares a decade ago, your money would have grown at nearly 25% per year.You’d be surprised at the level of savings you could build up in less than two decades if you invest your money wisely. Save £10,000 per year from age 50 (remember, you’d only need to contribute £8,000 per year into a SIPP to achieve this) and earn a return of 8.5% per year on your money through the stock market, and you’re looking at retirement savings of more than £350,000 by age 67. That’s the power of the stock market. Over time, stocks can transform small amounts of savings into huge sums.Overall, there’s nothing complicated about this ‘no savings at 50’ retirement saving strategy. All you need to do is save regularly into the right type of accounts and invest your money.If you’re looking for information on how to invest for retirement after 50, you’ve come to the right place. Edward Sheldon owns shares in Rightmove. The Motley Fool UK has recommended Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Edward Sheldon, CFAlast_img

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